The April 15 natural gas contract started the week sharply lower falling .161 or 5.6% in Monday’s session to settle at 2.678.
Last week’s rally above 10 and 40 day moving average resistance failed to hold as the market quickly sold back lower. This was the third failed rally attempt during the current winter.
The April contract bottomed out at 2.668 low on Monday holding above last week’s 2.641 low as support. This support is followed by weekly chart support between 2.567-2.575. A drop under 2.567 would turn the lower-2.400 level into the next longer term resistance.
The 10 day moving average at 2.755 is the first area of resistance today followed by the 40 day average at 2.805. A rally above last week’s 2.864 high is needed to turn the near term trend back higher.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bullish
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